Using a newly constructed macroeconometric model for Germany and the rest of the Euro area, we investigate the … macroeconomic effects of structural labor market reforms in Germany. We find that neither the fact that Germany can no longer pursue … Germany by implementing labor market reforms themselves constitute impediments to successful reforms. Reforms would relative …

replacement rate is lower than the current (post-reform) replacement rate in Germany. However, implementing the optimal …

unemployment in Germany, as well as several usually unobserved characteristics like personality traits, attitudes, expectations …